TaxTMI 
TaxTMI 
2016 (3) TMI 1459
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....d to law and facts of the case. 2. On the facts and in the circumstances of the case, whether the DRP is correct in directing the TPO/AO to provide freight subsidy where the figure of freight subsidy is not separately available in the annual report of the assessee company namely, Global Green Co.Ltd.., 3. On the facts and circumstances of the case, whether the DRP is correct in directing the TPO/AO to provide working capital adjustment in the case of assessee following judicial pronouncements in various cases which are involved either in SWD or ITES business. 4. For these and other grounds that may be urged at the time of hearing, it is prayed that the directions of the DRP in so far as it relates to the above grounds may be reversed.....
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....el for the assessee on the contrary submitted that they have filed cross objection to the instant appeal of the revenue, however it was fairly submitted that it was just for academic exercise and do not want to press the same. 6. We have given our thoughtful consideration to the submissions of the rival parties and also relevant order passed by the DRP, as the DRP held in its order that "Having heard the objection, it is noticed by us, from the findings given in the paragraph 9.3 of the order of the TPO that the figures of the freight subsidy is not separately available in the annual report and therefore, in absence of such figure, the adjustment cannot be computed. We are not in agreement with the findings of the TPO, in view of the fac....
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....rofits. The underlying reasoning is that; a. A company will need funding to cover the time gap between the time it invests money (i.e pays money to suppliers) and the time it collects the investments (i.e collects money from customer). b. This time gap is calculated as the period needed to sell inventories to customers + the period needed to collect money from customers -the time period granted to pay debts to supplier. Since assessee is a captive manufacturer selling products to its AE. The payment cycle in the case of assessee is shorter as against a considerable time lag in the case of comparable. Comparable company has a considerable working capital loan whereas the taxpayer has no working capital loan. It means that either ....